Dallas-based Denbury Resources Inc. has retained Credit Suisse First Boston to sell its natural gas-rich offshore operations in the Gulf of Mexico (GOM), which up to now have been the company’s secondary focus. The company targeted June 2004 to complete the sale.

Denbury owns interests in 81 GOM offshore wells, which had average production during 2003 of 47.7 MMcfe/d. However, the company noted that with recent well completions offshore, production for January and February averaged just over 50 MMcfe/d. At the end of 2003, proved reserves offshore totaled 16 MMboe.

“Our long-term plan is to concentrate our energy and investment on our tertiary operations where we have lower risk, greater predictability, virtually no competition in our areas of operation and higher profitability,” CEO Gareth Roberts.

Denbury plans to focus its capital on its capital budget on its CO2 tertiary recovery oil projects in Mississippi, which are now its core assets. It also said it would “continue to evaluate and consider acquisitions that fit within this strategy.”

No buyer has been identified as yet for the GOM operations, and if the sales price is less than anticipated Denbury said it may withdraw the sales package.

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